ONEOK Inc Q2 2025 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Spiro Dounis - Citi Infrastructure Investments LLC - Analyst : First question, maybe to start with the 2026 outlook. I can certainly sympathize with the change in the environment since February. And Walt, I guess I'm curious how lean you described the revised outlook. I think you said mid- to high single digits. And if you could maybe just provide a little bit more color on how much of that growth is hardwired by either contractual volumes, synergies, cost savings -- in other words, things that don't necessarily rely on volume growth. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 3:00PM, OKE.N - Q2 2025 ONEOK Inc Earnings Call

Question: Spiro Dounis - Citi Infrastructure Investments LLC - Analyst : Great. That's helpful color. Second one, maybe just going to natural gas. Sheridan, like you said, seems to be a bright spot, especially now with these EnLink assets in there. And I guess I'm just curious, two-part question here. One, can you just give us a little bit more color on exactly what's driving that and if it becomes something ratable enough to maybe start including in the forward guidance? And then you also mentioned data centers and AI power demand on the back of your comments there still in discussions. Just curious where you are maybe innings-wise in those discussions and when we should expect an announcement on that front.

Question: Jeremy Tonet - JPMorgan Chase & Co - Analyst : I know in the commentary, you described synergy capture picking up in the back half of '25. I was wondering if you could provide a bit more color on specific opportunities in how that, I guess, feeds into confidence in the guidance range. But any concrete examples there and what's coming together would be helpful.

Question: Jeremy Tonet - JPMorgan Chase & Co - Analyst : Got it. That's helpful. And then I just want to pivot towards BridgeTex here. I was wondering if you could provide a bit more color on economics there and synergies as well? And will you be consolidating BridgeTex? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 3:00PM, OKE.N - Q2 2025 ONEOK Inc Earnings Call Walter Hulse - ONEOK Inc - Chief Financial Officer, Executive Vice President of Investor Relations and Corporate Development, Treasurer Well, Jeremy, we were opportunistic here. We had the opportunity to increase our holdings from 30% up to 60% at very attractive multiples compared to recent transactions in the marketplace. Given the connectivity to our Medallion assets, we really thought that that made a lot of sense to continue to get more of that business. No, we will not be consolidating it going forward because we still have a governance structure with our other partner there that keeps it more of a 50-50 type of governance.

Question: Theresa Chen - Barclays Services Corp - Analyst : Looking at the downstream side of things on NGLs, your largest competitor in Permian NGL infrastructure has publicly disparished the economics of new LPG export facilities. Do you care to respond to this? And how has the commercialization progress been for your JV Texas City terminal?

Question: Theresa Chen - Barclays Services Corp - Analyst : Very helpful. And looking at the volatility that we've seen year to date in commodity prices, would you expand a bit more on the activity and expectations you have on G&P volume by basin and what those conversations with your producers look like at this point? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 3:00PM, OKE.N - Q2 2025 ONEOK Inc Earnings Call

Question: Michael Blum - Wells Fargo Securities LLC - Analyst : Just wanted to ask another question on BridgeTex. Just wondering if you can discuss the performance of BridgeTex this quarter. And then obviously, you've increased your position there. So I wanted to get your view of the outlook for that pipeline over the next couple of years.

Question: Michael Blum - Wells Fargo Securities LLC - Analyst : Got it. And then wondering if you can give us an update on West Texas LPG, where does volume utilization stand today? And how do you see the path filling that up? And is this latest processing front you announced part of that?

Question: Jean Ann Salisbury - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Rigs have come down a bit in the Bakken. I was just wondering if you have a sense of whether producers are high grading to oilier acreage in the current environment or if you would actually expect gas to oil ratio to increase over the next year and offset perhaps some of the lower growth.

Question: Jean Ann Salisbury - Bofa Merrill Lynch Asset Holdings Inc - Analyst : That makes sense. And then obviously, one of the major synergies from the Magellan acquisition has been butane blending. I know this comes up on every call, but could you just give a little bit more detail on broadly how much of it is just recurring almost midstream revenue that wasn't there before and how much of it is a more volatile marketing spread that's based on the spread of pricing?

Question: Sunil Sibal - Global Hunter Securities LLC - Analyst : Couple of clarifications. Starting off on the blending side of things, I know you talked about good visibility to the volumes in Q4 and 2026. Could you talk a little bit about your hedging strategy or how much of those margins in those blending operations are hedged as of now? And how does that compare to previous years?

Question: Sunil Sibal - Global Hunter Securities LLC - Analyst : Okay. And then on the new processing plant that you've sanctioned in Permian, I think you mentioned $365 million or so of related to that. So that's on building the plant and the related infrastructure, also to fill up that plant. And then how should we be thinking about economics on that? Obviously, with your integrated footprint, the economics improve. But if you think about on a standalone basis, how should we be thinking about economics on that investment?

Question: Sunil Sibal - Global Hunter Securities LLC - Analyst : Okay. And then returns-wise, anything to highlight there?

Question: Sunil Sibal - Global Hunter Securities LLC - Analyst : Yeah. So I was wondering, when you think about return on that investment in that processing plant, obviously, you've got integrated economics. But I was curious just on the processing side, how are returns on these investments stack up? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 05, 2025 / 3:00PM, OKE.N - Q2 2025 ONEOK Inc Earnings Call Walter Hulse - ONEOK Inc - Chief Financial Officer, Executive Vice President of Investor Relations and Corporate Development, Treasurer We don't ever get into the specific returns on a particular asset. But I think you touched on the key point there is that the benefit of having the unlinked business as part of the ONEOK overall business is that we get the integrated value all the way from the field throughout our value chain. So incrementally is quite profit.

Question: Jeremy Tonet - JPMorgan Chase & Co - Analyst : Just a quick one, if I could. As it relates to the 2026 outlook, would you be able to share any color on commodity price expectations to underpin that backdrop there? And is it on the strip in current spreads or any other color you could provide? Walter Hulse - ONEOK Inc - Chief Financial Officer, Executive Vice President of Investor Relations and Corporate Development, Treasurer Yeah. Sure, Jeremy. We don't want to set a precedent be double dipping here, but we'll miss thing. Basically, the update we gave you adjusting that down 2% of the $200 million was bringing it to current market. So it's -- as we look through that in that $65, $66 crude range.